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"These have happened not once but a number of times, and unless they're addressed they'll continue to happen," said Matthew Rubin, director of investment strategy at Neuberger Berman in New York. "I think it's one of many, many things that has rattled investors' faith in the equity markets." THE FED The Federal Reserve issued a statement Wednesday afternoon after wrapping up a two-day policy meeting, as is customary. But investors hoping for clarity were disappointed. Investors' reaction to the Fed statements can be a perverse equation. Some investors want the Fed to say that the economy is doing poorly
-- poorly enough to persuade the Fed to take more action to try to get it going again. Instead, policymakers acknowledged that the economy has ebbed so far this year, but pledged merely to take further steps in the future if necessary. But there are also doubts as to whether the Fed has any arrows left in its quiver. It can lower interest rates to try to spur borrowing, but rates are already at historic lows. It can buy bonds to try to drive investors into stocks, but the effect on the fundamentals of the economy are debatable. Matt Ballew, chairman of Security Ballew Wealth Management in Jackson, Miss., thinks that only more-responsible spending policies will help. "What the central banks can do from this point on is meaningless," Ballew said. "They can make it worse, but they can't make it better." Thursday, investors will be watching for statements from the European Central Bank meeting. Investors are anxious to know if European leaders have some concrete plan to tame the continent's debt crisis, or merely good intentions.
[Associated
Press;
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